Nvidia Stock Set for Modest Boost from SpaceX Deal
Nvidia's stock price is expected to rise modestly due to its exclusive deal with SpaceX. ChatGPT, an AI, predicts a 10% gain by the end of 2026, setting a target price of $238 per share.
The partnership was announced earlier this year, and Nvidia's shares rose 1.80% in pre-market trading on August 5. However, ChatGPT estimates that the deal will only generate significant amounts of money if SpaceX constructs additional data centers, launches more satellites, and installs a vast amount of hardware.
OpenAI's flagship platform also weighed in on the matter, stating that NVDA shares are already expensive and face multiple risks, including volatility, regulatory uncertainty, and valuation compression. The AI acknowledged that the exclusive deal is a bullish catalyst for Nvidia, but cautioned that it may not be enough to overcome these challenges.
Nvidia's stock price has been relatively flat this year, up only 12.23% from $188.85 to $211.94 YTD. If ChatGPT's prediction comes true, the stock would have extended its annual gain to 26.03% by the end of December.